
When Novell's president and COO, Ron Hovsepian, cancelled a trip to the UK this week I figured he had better things to do than meet with me. I suppose being named as CEO of Novell as part of a boardroom coup counts as that.
What's surprising about Hovsepian's appointment as CEO of the Linux and identity management company is not that it has occurred, but the manner in which it was announced.
"The Board concluded that a management change would be the best way to accelerate the execution of our growth strategy and build value for shareholders," read a statement from the company's new non-executive chairman, Thomas Plaskett, who has replaced Jack Messman's other role.
Novell's CFO, Joseph Tibbetts has also been fired, and will be replaced by Novell's controller, Dana Russell, on an interim basis as the company looks to increase its growth following the move into Linux and op-en source software two years ago.
Messman's position at the Novell's helm has been under pressure for some time. Most recently Kirk Materne, an analyst at Banc of America Securities, suggested the company promote Hovsepian, citing "a misaligned cost structure, sagging management credibility and ineffective capital deployment" at the company.
That followed criticism of Novell's management from Credit Suisse First Boston as well as investment firm Blum Capital back in September 2005.
Hovsepian had been widely expected to eventually take the reins of Novell from Messman following his promotion from president of Novell's North American unit to executive vice president and president of field operations in May 2005.
He was then promoted to president and chief operating officer in November last year giving the company its first designated number two executive since former vice chairman of the office of the chief executive, Chris Stone, left in November 2004.
Since then he has been a fierce defender of the company in the face of some serious criticism, and demonstrated a determination to see improvements. “My patience is the end of the year,” he told me in March about how long the EMEA and Asia Pacific businesses had to implement changes and improve sales.
That sort of determination will be required to continue Novell's improvements and placate frustrated investors. Watch this space for more details of Hovsepian's plans for Novell and the executive changes…